Financial support for first-time home buyers is to be increased and eligibility criteria widened in a move aimed at helping more young people onto the property ladder.

Chief Minister Alfred Cannan MHK made the announcement as he opened the fourth Isle of Man Government Conference.

He said: ‘Despite progress, the need for affordable housing and the challenges for our young people to get on the housing ladder remain a real concern. It is also one of the challenges we face in retaining and attracting the skills our economy needs.

‘We are today committing that we will substantially revise and improve our first-time buyer schemes.’

The government currently operates two shared equity schemes for eligible buyers, offering equity loans of up to 30% of a property’s purchase price. Access depends on the buyer’s annual income.

Mr Cannan said the government would increase salary thresholds and upper limits on purchase prices. Support for the ‘Choice’ scheme, which allows purchases on the open market, will also be expanded.

He added: ‘This will provide more opportunities for young families to access the housing market and will support our developers with the confidence to increase the rate of supply in these markets.’

Infrastructure Minister Dr Michelle Haywood MHK described the move as a ‘welcome development’ that will be progressed by the new Housing Agency when it meets for the first time on 3 October.

She said: ‘We want to accelerate the construction of affordable homes and improve access to housing. We are seeking independent directors to join the board of the Housing Agency. I would encourage anyone with experience in the housing sector to consider this opportunity and how they could shape our efforts to build more affordable homes.’

The Housing Agency will consult on the proposals before any revised schemes go to Tynwald for approval.

Housing is a priority within the Island Plan, with a commitment to increase the number of homes for residents. Since 2021, planning permission has been granted for more than 1,300 new homes. The government has set a target of an additional 1,000 homes being occupied by the next general election in September 2026.

In November last year, the Housing and Communities Board (HCB) set out a longer-term ambition for 1,000 new affordable homes over the next decade. That followed the island’s first objective assessment of housing need, which found almost 10,000 new homes would be required by 2041 to support the government’s population target of 100,000.

The HCB also reported a shortage of housing to meet current demand and called for funding to bring empty public sector properties back into use. At the time, local authorities estimated almost £477,000 was required to repair 44 such homes, with other providers reporting smaller numbers of vacant properties awaiting work.

The board said government-owned land and buildings could also be adapted to provide new supported housing, and that a Housing Association could help consolidate future programmes.